Editorial: Trouble at the intersection of Main and Wall

There will not be a lot of tears shed for greedy money barons who face ruin because the $700 billion Wall Street rescue plan was defeated Monday.

There will not be a lot of tears shed for greedy money barons who face ruin because the $700 billion Wall Street rescue plan was defeated Monday.

But there are many intersections between Wall Street and Main Street and the leaders we elected to make the tough decisions failed horribly in convincing finger-in-the-wind lawmakers of the devastation that will befall average Americans with the bailout’s failure.

In the wake of the House vote, the stock market plunged with its biggest point drop in history, nearly 778 points, larger even than the first day of trading following the terrorist attacks in 2001.

But while many say taxpayer money should not be used to subsidize risky investments by greedy traders, our political leaders have failed to explain to the average voter why it matters.

It matters because that 8 percent one-day drop in the S&P 500 means pension and retirement funds lost about a decent year’s worth of gains.

Prior to, and now because of the bailout’s defeat, the credit markets have dried up with no liquidity and that means the person looking to buy your house can’t get a mortgage, no matter how good his and her credit is.

Companies that rely on the short-term borrowing market to cover payroll and other expenses such as rent and utilities may have to lay off workers because there is no money to borrow.

Car buyers will be left out in the cold because the car they had their eye on may be out of reach because their credit ceiling was lowered because of the shortage of money.

It matters because stores that need credit to buy inventory, especially for the upcoming holiday season, will downscale their purchases, which means less for you, which you probably won’t have the money for anyway, and means more people out of work.

In short, it matters a whole lot more than the “us against them” mentality that divided sides – Democrats and Republicans, investors and taxpayers – in this bailout.

What also matters is that ersatz leaders on both sides failed to rise above their petty positions and inject principle over politics.

House Speaker Nancy Pelosi did no one any favors when prior to the vote she used her minutes at the podium to deliver a shockingly partisan attack on the Bush administration. Whatever one thinks of the outgoing president, it was not the time to rock a tenuous bipartisan coalition and Pelosi should have held her tongue. It’s not like anyone doesn’t know where she stands.

But equally petty was the assertion by House Minority Leader John Boehner that Pelosi’s speech triggered the defection of 12 Republicans, who could have swung the passage if they stayed, who voted no out of pique. How can we take elected officials seriously when they allow hurt feelings to rule over the good of the country?

As much as we have disagreed with President Bush, he and Treasury Secretary Henry Paulson have shown leadership by meeting with key members of both parties and open-mindedness by embracing changes to the plan on executive pay, government regulation and other areas they had previously opposed. That is the way to get things done.

We hope the next several days are used to reconstruct the shaky coalition and pass a bill to rescue the economic engine that drives our country. And we hope lawmakers who understand the path we are on explain to their constituents the key crossroads of Main Street and Wall Street.